EVERTON and Liverpool may have to slug it out for a place in next season's Champions League.

A clause in UEFA's shock announcement said today: "There will be no country protection for Liverpool FC."

This is believed to mean the Reds could be drawn against a team from their own association in the third qualifying round - and with Manchester United seeded along with the Reds, that leaves unseeded Everton.

An all- English draw would also conveniently solve UEFA's problem of the share of English market pool money.

Of course, first Liverpool would have to come through two qualifying rounds - and while the identity of the clubs concerned will not cause undue consternation at Anfield, some of the journeys may.

The first qualifying round could throw up trips to Azerbaijan, Armenia, Albania or Kazakhstan --while the second round offers the alarming prospect of a trip to Georgia to face Dinamo Tbilisi.

UEFA always had a space allocated in the group stages for the competition winners - which they could have allocated to Liverpool had they so wished.

Instead, Turkish champions Fenerbahce have been moved directly into the group stages, Polish champions Wisla Krakow have taken the Turks' place in the third qualifying round, the Romanian champions, Steaua Bucharest, are pushed up in turn into qualifying round two and Liverpool have replaced the Romanians in the first qualifying round.

* Phil Neal, who played in each of Liverpool's first four European Cup triumphs, was jubilant at the confirmation from UEFA.

He said: "We're delighted that the cup holders - as we are - are in be in.

"We're in at the early qualifying stages, but who cares? It might curtail a pre-season tour but we're back in the Champions League and the boys, like us in 1977, would like to repeat it.

"Everyone likes the champions to defend the trophy. It's like Arsenal not defending the FA Cup, so it's only right Liverpool were allowed to do that."

Neal's one concern regarding today's decision is that Liverpool's players could tire before the end of the season, unless Rafael Benitez considerably strengthens his squad and boosts numbers.

He added: "They're already scheduled to come back on June 27 so it will make it a very long season, so he's going to need a bigger squad."